Amid the ongoing policies to revitalize new towns such as the reconstruction of the first-generation new towns and public housing in the third-generation new towns, the second-generation new towns (Seongnam Pangyo, Hwaseong Dongtan 1 & 2, Gimpo Han River, Paju Unjeong, Suwon Gwanggyo, Yangju, Wirye, Pyeongtaek Goduk, Incheon Geomdan), which were overlooked in the presidential campaign pledges, seem to be struggling to recover from the real estate market slump. Recovery has only been seen in regions with reliable transportation infrastructure like Seongnam Pangyo and Hwaseong Dongtan.
According to the real transaction disclosure system of the Ministry of Land, Infrastructure and Transport on the 30th, the dedicated 84㎡ unit at 'Wirye Central Xi', a major complex in Wirye new town, was transacted for 1.63 billion won on the 5th. This is a decline of 20 million won compared to the transaction price of 1.65 billion won in October of last year. It is 100 million won cheaper than the record price of 1.73 billion won from June 2021.
The dedicated 84㎡ unit at 'Han River Metro Xi 2nd Complex' in Gimpo Han River new town was transacted for 680 million won on the 2nd. This is a decline of 70 million won compared to the 750 million won transaction in September of last year. The dedicated 65㎡ unit at 'Dongtan Station Lotte Castle' in Hwaseong Dongtan new town was transacted for 1.205 billion won, a drop of 45 million won from the previous transaction price of 1.25 billion won on the 1st.
The dedicated 84㎡ unit at 'Unjeong New Town I-Park' in Paju Unjeong new town was transacted for 750 million won on the 17th, down 50 million won from the 800 million won transaction in September of last year. Most of the second-generation new towns, excluding Pangyo new town and Gwanggyo new town, which are equipped with transportation infrastructure, have seen a decrease in actual transaction prices.
The second-generation new towns are undergoing suburbanization and are being neglected in recent policies, leading to a prolonged market slump. According to political figures and the real estate industry, the People Power Party candidates for the 21st presidential election have made deregulation such as the abolition of the excessive profit recovery system for reconstruction (jaecho-hwan) a major pledge, while Democratic Party of Korea presidential candidate Lee Jae-myung has prioritized the expansion of public housing and development of the fourth-generation new towns.
If these pledges are realized, the older reconstruction complexes concentrated in the first-generation new towns will likely gain momentum as well as the projects under development in the third-generation new towns based on public housing. The first-generation new towns were designated as leading reconstruction zones for 13 areas, totaling 35,987 households, in November of last year. After passing the project implementation plan approval in 2026, construction is set to begin after relocation from the 13 areas by 2027, with a target of occupancy by 2030. Following the designation of leading zones, nearby complexes have also seen an increase in housing prices.
The third-generation new towns have achieved a successful subscription thanks to the low-priced public housing offers. It is expected to be influenced once the policy to expand public housing is implemented.
In contrast, the second-generation new towns are facing projections of continued stagnation in housing prices due to the lack of clear mentions in these pledges. Other than the announcement of the GTX line, there are no significant positive developments. The government has stated it will accelerate the opening of GTX, but even the fastest line, GTX-A, is undergoing 'partial opening', which does not include the key stop at Samsung Station, and other lines have been delayed or have long remaining timelines until they open. The failure of the Wirye Line also had an impact.
An official from an A real estate agency in Wirye new town noted, "There were expectations regarding the opening of the Gyeonggi Provincial Express Railroad (GTX), but housing prices are still nearly 20% lower than when they were at their peak," and added, "While this is not only a problem for the second-generation new towns, inquiries about buying have significantly decreased as the market slump continues."
Experts also explained that expanding infrastructure is a priority. Professor Ko Jun-seok, head of the Business School at Yonsei University, stated, "The second-generation new towns need to be well-equipped with infrastructure and revitalized to build trust for future developments of fourth and fifth-generation new towns. If the stagnation is neglected after their designation, it will adversely affect future new town policies," and further remarked, "Infrastructure must be provided, and supply should be appropriately managed to distribute demand from Seoul to the new towns, but the second-generation new towns are currently at a neglected level."